OECD Reduces Estimates of Global Economic Growth Again

The OECD has again reduced its estimates for the global economy in 2019 and 2020 after reductions in November, warning that trade disputes and uncertainty over Brexit will affect global business and commerce.

For Brazil, the OECD reduced the growth estimate in 2019 by 0.2 percentage points, to 1.9 percent, maintaining the expansion projection of 2.4 percent in 2020.

The Organization for Economic Cooperation and Development (OECD) projected in its outlook report that the world economy will grow 3.3 percent in 2019 and 3.4 percent in 2020.

These projections represent cuts of 0.2 percentage point by 2019 and 0.1 point by 2020, compared with the OECD estimates in November.

“High uncertainties in economic policy, trade tensions and further erosion of business and consumer confidence are contributing to the slowdown,“ the OECD said in the report.

“Substantial uncertainty about economic policy remains in Europe, including on Brexit. A disorderly exit would increase costs for European economies substantially,“ the OECD added.

For Germany, Europe’s largest economy, the OECD severely cut its GDP growth estimate in 2019 to 0.7 percent from 1.6 percent earlier. The organization predicts a slight rebound to 1.1 percent in 2020.